Env. Eco

Running Head : Environmental Economics

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Environment as an economic good

Anything that individuals can approximate value and exchange is regarded as being an economic good . So , can environment be valued . Yes , it is perfectly possible to value environment and trade with each other Indeed individuals have been trading on environmental goods for some time now (Cline , 1992 . For instance , carbons-emissions have are being traded within organisations at just like other commodities trade in the international market . It is unfortunate that most individuals in

the world see environment as public good , which is not . This is because the international haggling over environmental issues has meant that only the side which sees the item as a public good has succeeded in pushing its agenda

Pollution as deviation from competitive market model

Pollution is never a deviation from the competitive market model it happens as a result of regulatory authorities ' failure to let individuals value their environment , which could enable them to charge those whose actions lead to pollution . Authorities ' actions have thus led to a situation where a market for pollution does not exist . In that sense , referring to pollution as an example of market failure is a little extensive . Actually , what individuals regard as market is as a result of regulatory interventions that end up distorting the market because there is poor information flaw between market participants

Property rights and environment problems

Recognition of property rights is an effective mean of controlling environmental problems . This is because individuals get empowered to take direct measures of controlling their local environment . Property rights lead to the localisation of decisions regarding environmental problems , which makes it possible for people to make decisions depending on local needs . By privatising environmental resources , individuals living in highly polluted measures can easily develop local solutions to their environmental problems the current mechanism forces them to report to the authorities . This privatisation must however be enforced through proper regulatory frameworks . As it is today , decisions regarding environment seems to have been left to authorities that end-up using one-size-fits-all approach

Cost benefit analysis

This theory balances opportunity costs and gains that society will experience as a result of certain projects or policies . Though it has proved effective in achieving that goal , some critics have argued that the theory forces some individuals to pay a higher price , while others receive bigger benefits . It is thus argued that the theory is not fair as the proponents believe (Verchick , 2005 . Another drawback on the theory is the cost that goes in the research organisations could sometimes pay handsomely for certain studies that would end being used by lobby groups to pass regulatory agendas . This results to a situation where the masses seem to have been taken advantage-of because significant number of CBA studies are bent to fulfil goals of certain political interest groups

Contingent valuation

The major advantage of contingent evaluation is its ability to provide individuals with ways to value utility . As a result , individuals can measure the...